According to the report, the hospital group is up for the year, in spite of concerns over increasing numbers of uninsured patients, growing patient debt and decreasing patient admissions. Analysts and reports from Tenet and HMA showed that hospitals could be benefiting overall by controlling their costs, especially labor.
Despite projecting a second quarter loss equal to 2008’s numbers due to decreased admission rates, Tenet’s shares rose 6.4 percent and said pricing gains and growth in outpatient services have led to higher than expected revenue. As a result, Tenet raised its adjusted EBITDA guidance by $50 million to a range of $810-$875 million, according to the report.
HMA is reporting a 91 percent increase in second-quarter profit due to selling some assets and increased outpatient services. Its stocks rose 7 percent. HMA said improving operations added to this profit, and it raised its full-year guidance for earnings from continuing operations to 45-49 cents from 37-45 cents per share, according to the report. HMA also predicted increasing inpatient admissions.
Read the WSJ’s report about improving hospital stocks due to cost control.
